The 60
Second Update with

Congressman John Linder

1. What is the Fair Tax and why do you call
it that?

The FairTax is a fundamental tax reform plan that
eliminates all Federal income-related taxes. This includes all income taxes, all taxes on capital
gains, all payroll taxes, the self-employment tax, and the gift and death
taxes. In the place of these assorted burdens on the average American, the government would impose a 23 percent
tax on the personal consumption of new goods and services. Additionally, every family would receive a prebate of the
sales tax on spending up to the Federal poverty level, to be paid monthly in
advance. This would allow a family of four to spend $29,140 annually
without having to pay a single penny in Federal taxes.

We call it the
FairTax, because quite frankly, it truly is fair – not just for some Americans,
but for all Americans. An individual
will be taxed only as much as he desires to be taxed, for the individual has
ultimate control over how much he spends. There can be no fairer method of
raising government revenue.